Tech
Generative AI funding reached new heights in 2024
If there was any doubt, the generative AI bubble did not burst in 2024.
Investments in generative AI, which encompasses a range of AI-powered apps, tools, and services to generate text, images, videos, speech, music, and more, reached new heights last year. According to data from financial tracker PitchBook compiled for TechCrunch, generative AI companies worldwide raised $56 billion from VCs in 2024 across 885 deals.
That raw cash total is a new record for the segment. It’s up 192% from 2023, when investors poured $29.1 billion into generative AI startups across 691 deals.
“We aren’t seeing a slowdown in generative AI funding, as big names like OpenAI, Anthropic, and xAI continue to secure major raises and release new, competitive products,” said Ali Javaheri, an emerging technology analyst at PitchBook, in an interview.
Deal value in Q4 2024 soared to $31.1 billion with the closure of mammoth rounds like Databricks’ $10 billion Series J, xAI’s $6 billion Series C, Anthropic’s $4 billion strategic investment from Amazon, and OpenAI’s $6.6 billion round.
Mergers and acquisitions were a small share of generative AI investments in 2024: $951 million, per PitchBook data. To be clear, that’s exclusive of the various “acqui-hire” deals executed by Google, Microsoft, and Amazon. Google reportedly paid $2.7 billion to hire much of chatbot startup Character AI‘s staff and license its technology, while Microsoft is said to have spent $650 million licensing Inflection‘s AI models and hiring its CEO, Mustafa Suleyman.
U.S. companies attracted the bulk of generative AI backing last year. Startups outside the U.S. nabbed just $6.2 billion of all 2024 VC investments in the market. There were some big winners, however, like Beijing-based Moonshot AI ($1 billion in February), French startup Mistral (~$640 million in June), Cologne-based company DeepL ($300 million in May), Shanghainese firm MiniMax ($600 million in March), and Tokyo-based Sakana AI (~$214 million in September).
So what might 2025 hold?
Javaheri believes that the generative AI sector risks becoming oversaturated with startups in exceedingly similar (or even identical) verticals. To his point, no fewer than four companies developing AI coding assistants — Augment, Magic, Codeium, and Poolside — closed rounds exceeding $100 million last year. And a host of generative media startups (e.g., Black Forest Labs, ElevenLabs) have recently secured tens of millions of dollars in funding at sky-high valuations.
The trend may not be sustainable as investor pressure to show appreciable revenue growth increases.
According to Javaheri, technical challenges and the vast computing costs needed to stay competitive may pose additional challenges for generative AI ventures. “Only the best-funded startups can continue to keep up with the pace needed for the most innovative models,” he added. “Most of the high valuations are thus going to come from the infrastructure layer.”
That is, of course, very good news for “infrastructure layer” generative AI players, which did quite well for themselves in 2024. Data center startups like Crusoe ($600 million in December) and Lambda ($320 million in February) represented some of the generative AI market’s largest rounds.
Investment firm KKR predicts that soaring demand for data centers to support AI will boost global spending in the sector to $250 billion a year.
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Tech
Cursor makes its biggest India push yet ahead of SpaceX acquisition with localized pricing
Weeks before its expected acquisition by SpaceX closes, AI coding startup Cursor is making its biggest push into India yet, launching its first country-specific subscription as the company bets on one of the world’s largest developer markets to drive its next stage of growth.
On Monday, the startup introduced Cursor Start, a ₹649-a-month (about $7) subscription built specifically for India — and priced well below Cursor’s standard $20-a-month Pro subscription.
The move reflects India’s growing importance to Cursor’s business. The startup says India is already its third-largest market globally and home to its highest concentration of power users, with its user base in the country more than tripling over the past year.
That scale, coupled with India’s deep pool of software engineering talent, made it the first market where Cursor chose to localize pricing, Simon Green, Cursor’s head of Asia-Pacific and Japan, told TechCrunch. “We felt that we had an opportunity there to right-size the commercial model and drive scale,” Green said. “The technical competency of the country and the engineering talent that already exists make it a very natural fit.”
India has emerged as one of the world’s largest software developer hubs. Earlier this year, GitHub said that the country has more than 27 million developers on its platform, second only to the U.S., with more than two million joining in 2026 alone.
Cursor Start includes access to Cursor’s Composer 2.5 model and Grok 4.5, with higher usage limits than the free tier, alongside cloud agents, its iOS app, plugins, Model Context Protocol support, hooks, and skills. The startup said the plan is aimed at developers who need more AI-assisted coding capacity than the free tier offers without upgrading to its full Pro subscription.
The lower-priced plan is intended to broaden access rather than replace Cursor’s flagship offering, Green said. Unlike the $20-a-month Pro subscription, Start does not include access to frontier AI models from providers such as OpenAI and Anthropic, or advanced features including Bugbot, Auto Mode, Automations, and the Cursor SDK.
The plan is billed in Indian rupees and supports payments through credit and debit cards as well as India’s Unified Payments Interface (UPI).
Green told TechCrunch that Cursor would use multiple checks to ensure the India-only subscription is available only to individual users in the country, including measures to deter people from accessing the plan through virtual private networks (VPNs).
Cursor is not alone in tailoring its pricing for India. OpenAI and Anthropic have also rolled out India-specific plans over the past year as global AI companies compete for users in one of the world’s fastest-growing AI markets.
While Cursor Start is initially limited to India, Green told TechCrunch that the startup could expand localized pricing to other markets if the model proves successful.
“We will continue to do everything we can to fuel the demand and serve those clients that are using us,” Green said. “Now, if this model proves that we could take it to other markets, perhaps we will. But I think it’d be crazy to say we would never do it elsewhere.”
OpenAI provides one precedent for this strategy, having launched its sub-$5 ChatGPT Go in India before expanding the lower-priced subscription to other markets.
In addition to the localized pricing strategy, Cursor is also expanding its presence in India through new hires. Green told TechCrunch that the startup recently hired its first salesperson in India and expects another leader to join in Delhi. The company is also building out its a government affairs office, alongside three technical customer support hires, as it expands its presence in Bengaluru, Chennai, Hyderabad, and Mumbai.
Cursor’s enterprise push is still in its early stages in India, Green said, where adoption has so far been driven largely by individual developers, startups, and universities. He said Cursor sees significant opportunities in sectors including banking and large enterprises as it expands its local sales efforts.
Green said, the India-specific pricing was designed to be commercially sustainable rather than a loss leader. He said the lower-priced plan is viable because it is built around Cursor’s own AI models, which carry lower operating costs than relying primarily on third-party frontier models.
Cursor’s India expansion comes a little over a month after Elon Musk’s SpaceX agreed to acquire the AI coding startup in a $60 billion all-stock deal, following SpaceX’s blockbuster initial public offering. The acquisition is expected to close in Q3. However, SpaceX has been partnered with Cursor since April to develop a next-generation “coding and knowledge work AI.”
Green said Cursor will continue to operate independently until the transaction closes and that the company’s India expansion plans were already in motion before the deal. Once the acquisition closes, however, Green said SpaceX’s existing presence in India through Starlink could help Cursor expand faster by lowering commercial and operational barriers.
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Tech
Lyft and Baidu enter London’s robotaxi battleground as testing begins
Chinese tech giant Baidu has started testing autonomous vehicles in London as part of its partnership with Lyft and Freenow, the German taxi and multi-mobility app that Lyft now owns. Baidu is the latest in a string of companies to test self-driving technology in the UK ahead of commercial robotaxi deployments.
The testing, which began Tuesday with human safety operators, comes nearly a year after the two companies struck a strategic partnership to deploy Baidu’s purpose-built Apollo Go RT6 robotaxi across key European markets through the Lyft platform. The vehicles will eventually be available through Freenow, which Lyft acquired in 2025 for about $197 million.
That deal gave Lyft a foothold in Europe’s ride-hailing market, where a handful of well-funded companies are now jockeying to be first to market with robotaxis.
London is particular is shaping up to be a key battleground in the region. In April, Waymo began testing its autonomous vehicles with human safety operators in the city. Uber and its self-driving tech partner, Wayve, also announced plans to launch a robotaxi service in London this year. That initial service — which customers can now sign up for on an interest list — will have human safety operators behind the wheel before fully driverless operations begin later.
Baidu and Freenow by Lyft (as the latter service is now called) said they expect to invite the public to hail their robotaxis in 2027. The companies, which didn’t provide a more detailed timeline, noted that the launch will depend on regulatory approval.
For now, dozens of test vehicles will operate within London’s borough of Brent. Lyft and Freenow said they continue discussions with safety and city officials, including Transport for London (TfL) and the Centre for Connected and Autonomous Vehicles (CCAV). The UK government is in the process of creating autonomous vehicle regulations and opened applications in May for companies interested in an AV pilot program that lets companies test self-driving vehicles under government oversight.
When the service does launch, Freenow by Lyft said it will operate a hybrid network — employing the same language rival Uber has used — meaning human drivers operating taxis and private-hire vehicles will work alongside the robotaxis.
“As a platform with deep roots in the taxi industry, our priority is ensuring that autonomous technology supports the professional drivers who keep London moving,” Thomas Zimmermann, CEO of Freenow by Lyft, said in a statement.
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Tech
Granola launches an Apple Watch app
AI note-taking app Granola is launching an app for the Apple Watch in hopes that its users will want to record meetings and take notes without using their smartphones.
Users can set the Granola app as one of the watch faces to start transcribing at any time. The app can also surface reminders about upcoming meetings, and works with the iOS app, which launched last year.
The company’s co-founder, Chris Pedregal, told TechCrunch that the Apple Watch app is meant to be a way to capture in-person meetings without having to take your phone out of your pocket — for example, if someone is having a walking one-on-one meeting.
When Granola tested its app with employees who had Apple Watches, a big chunk of their mobile usage switched from iOS to the Watch, the company said.
In the past year, companies have released auxiliary devices that can be used with smartphones to record and transcribe meetings. Granola said it considered it easier to develop an app for Apple Watches rather than integrate with another hardware product at this point. Dictation app Monlogue earlier this year also added support for meeting note-taking, for both online and offline modalities, along with Apple Watch support.
Granola became a unicorn earlier this year with a $125 million Series C round that was led by Index Ventures.
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